Morgan Joseph and Duncan-Williams provide good grades for Synergy's late-stage chronic constipation treatment and suggest company may be an attractive candidate for acquisition

Online PR News – 17-May-2011 – – NEW YORK, N.Y.-- Synergy Pharmaceuticals, Inc.,
(SGYP.PK), whose treatment for chronic constipation or constipation -
predominant irritable bowl syndrome is in late-stage development, has
been given significant assessments from two investment analysts in
reports released in the last few days.

* In a report issued Friday, May 13, Morgan Joseph said Synergy is
worth $15 a share (the stock was at $4.42 at midday Monday, May 16) --
and suggested it could rise near $45.

* In a report released Thursday, May 12, Duncan-Williams said Synergy
could be an attractive acquisition for gastroenterology drug developer
Salix Pharmaceuticals (Nasdaq: SLXP), whose management indicated it is
capable of doing large transactions in the $2 B to $2.5 B range.

The market for Synergy's lead drug candidate, plecanatide, numbers an
estimated 100 million people worldwide who suffer from
constipation-predominant irritable bowel syndrome or chronic
constipation.

Placanatide is a member of the new class of non-system drugs, referred
to as GC-C receptor agonists, for treatment of chronic constipation,
irritable bowel syndrome with constipation (IBS-C) and GI diseases.

When Synergy announced the results of its Phase 11a clinical trial last
year, Gary S. Jacob, PH.D., President and CEO of Synergy, cited the
"superb safety profile" that plecanatide exhibited in the trial --
"there was a complete absence of reported diarrhea."

The Morgan Joseph report said Synergy's plecanatide "is a substantially
risk-mitigated asset" because of the absence of diarrhea and reported
the drug is basically the same as linaclotide developed by Ironwood
Pharmaceuticals, except that linaclotide caused diarrhea.

In a Merrill Lynch report by research analyst Rachel McMinn last
October, it was stated that "the mechanism of action of the two drugs
(from Synergy and Ironwood) were identical." The difference, however,
was that Synergy's clinical trial did not produce the side effect of
diarrhea that the Ironwood drug reported, according to the Merrill
Lynch assessment.

The Morgan Joseph report suggested its $15 price target for Synergy may
be far short of its true value, and added:

"We would note that, if plecanatide were to be valued similar to
linaclotide, the implied price per share of Synergy stock would
approach $45, without considering Synergy's pipeline."

The Duncan-Williams report said Salix is actively looking at
acquisition opportunities, with "an interest in chronic
constipation/IBS-C products."

The report added it had identified two companies with late stage drug
candidates in this area, one of which is Synergy, and it added:
"Synergy...is entering a large registrational chronic constipation
trial later in the year following robust data in Phase 2."